Initiative 1631 would have imposed a starting fee of $15 per ton on carbon emissions starting in 2020. The fee would increase $2 each year until greenhouse gas reduction goals are met, according to the proposal.

The measure was expected to raise more than $2 billion in its first five fiscal years. Authors of the initiatives say 70 percent of the revenue would be invested in building up a clean energy infrastructure.

About 100 emitters such as oil refineries, natural gas power plants and fuel distributors would pay the fee, raising roughly $1 billion in the first year. Certain industries that are energy intensive and trade dependent, such as aluminum and steel producers, would be exempt.